TAIPEI (AFP) Jun 30, 2004Taiwan President Chen Shui-bian said Wednesday the island's economy is expanding steadily after bottoming off in 2002 and is expected to grow 5.41 percent this year.

Speaking at the inauguration ceremony of a joint venture plant between Taiwan's Nanya Technology and German semiconductor giant Infineon, Chen said the economy had recovered from uncertainty two years ago to post steady and fast growth.

"Looking back the late 2002 when I was here to attend the ground-breaking ceremony of the plant, the Taiwan economy was shrugging off from the bottom and was just to rise," Chen said.

The Taiwan economy hit a low in the third quarter of 2001 when it contracted 4.42 percent year-on-year, Chen said.

"At that moment the economy abounded with uncertainties."

"But a year and a half later, the difficult time was over. The economy grew 6.28 percent in the first quarter of this year... it was marked up from 5.16 percent previously forecast in February," Chen said.

"The economy is expected to grow 5.41 percent this year, up 0.67 percent from the previous forecast. This shows the economy is expanding at a steady and fast pace."